Earlier this month, Mayor Cherelle L. Parker presented her proposed Fiscal Year 2027 budget. It outlines a plan for ongoing investment in increased economic opportunity, housing, public safety, and improving the overall quality of life for people in every neighborhood.

The proposal builds on the administration’s “One Philly, One Future” agenda. It aims to enhance Philadelphia’s long-term economic strength through growth and mobility opportunities while also meeting immediate community needs.

The FY27 capital budget alone suggests more than $1.1 billion in City of Philadelphia-supported investment. This funding is expected to draw in $7.12 billion from federal, state, private, and other sources. This brings the total six-year capital investment to more than $22 billion.

In addition to these investments, the proposal depends on a series of revenue changes to support new spending without stretching the City of Philadelphia’s long-term financial position. These changes include a proposed 2% increase to the hotel tax, a 20-cents-per-ride fee adjustment to the rideshare tax for services like Uber and Lyft, and the introduction of a new 25-cents-per-order delivery fee aimed at high-volume e-commerce activity.

Meanwhile, the administration continues its planned reductions to the Business Income and Receipts Tax (BIRT) and the Wage Tax, along with other specific fee and enforcement changes. More details on these proposals are outlined below.

These investments focus on the Parker Administration’s main goals to make Philadelphia the safest, cleanest, and greenest large city in the country. They also seek to increase economic opportunities for people in every neighborhood through local job growth and access to good-paying, family sustaining careers.

Over the past year, the Parker Administration has pointed out progress in several key areas, including:

  • Continued funding for violence prevention and law enforcement efforts to enhance public safety.
  • Expanded efforts in cleaning, revitalizing corridors, and beautifying neighborhoods throughout the city.
  • Ongoing funding for workforce development and support for small businesses.
  • Significant commitments to increase housing supply through the H.O.M.E. initiative and related projects.
  • Strategic investments to prepare Philadelphia for major global events in 2026, such as the FIFA World Cup and the nation’s 250th anniversary.
  • Preservation of transit affordability programs, including $25 million in funding for SEPTA’s Zero Fare program for low-income residents.

Together, these initiatives aim to reinforce Philadelphia’s economic base while improving life for both residents and businesses.

Tax Policy and Revenue Changes

The FY27 budget proposal includes a mix of targeted tax increases and continued reductions to broad-based taxes. These measures are designed to generate near-term revenue while maintaining long-term competitiveness.

Key proposals include:

Hotel Tax Increase

  • The proposal includes an increase to the hotel tax from 15.5% to 17.5%, generating an estimated $20 million annually. This increase is tied in part to expected tourism activity related to major 2026 events.

Rideshare Tax (Uber and Lyft)

  • The City of Philadelphia proposes the addition of a $0.20 fee per trip, generating approximately $9.6 million annually. This applies to services such as Uber and Lyft and would likely increase per-trip costs for consumers.

E-Commerce and Delivery Fee (Amazon, logistics providers)

  • The proposal introduces a new per-transaction delivery fee of $0.25 on high-volume delivery services from companies like Amazon, excluding purchases of essential items like food and medical supplies. This is projected to generate $15 million of expected revenue annually, which would be dedicated to the city’s Transportation Fund for street paving and traffic safety initiatives.

Business Income and Receipts Tax (BIRT)

The administration continues its plan to reduce the BIRT:

  • Net Income portion reduced from 5.81% to 5.71%
  • Gross Receipts portion reduced from 0.1415% to 0.1410%
    • These reductions represent incremental steps in a multi-year plan to improve Philadelphia’s competitiveness.

Wage Tax

  • Continued gradual reductions to the Wage Tax:
    • Residents: reduced from 3.75% to approximately 3.74%
    • Non-residents: reduced from 3.44% to approximately 3.43%
      • These changes are modest but aligned with long-term goals of attracting residents and employers.

Additional Fees and Revenue Adjustments

  • The proposal also includes adjustments to select City of Philadelphia fees and enforcement mechanisms, expected to generate $10–15 million annually through improved compliance and targeted increases.

In total, these targeted tax and fee changes are projected to generate approximately $70–90 million annually, partially offsetting the cost of new investments while maintaining a phased approach to reducing broad-based taxes.

Strengthening Philadelphia’s Business Environment

Mayor Parker’s FY27 proposal continues to stress the need for a competitive and inclusive economy: an economy that supports small business growth, job creation,  and ongoing workforce development and skills training that provide accessible pathways to these opportunities.

The administration’s broader economic plan emphasizes expanding opportunity while making sure Philadelphia stays competitive with peer metros who have historically invested more in this space.

Workforce Development and Economic Mobility

The FY27 proposal continues funding for projects that connect residents to job opportunities and strengthen the city’s workforce pipeline.

These investments include:

  • Funding for workforce development to broaden job training and career pathways for residents.
  • Ongoing support for youth career programs and initiatives that connect learning with careers.
  • Investments to help Philadelphians find family-sustaining jobs in both public and private sectors.

Supporting Small Businesses and Commercial Corridors

The Parker Administration continues to focus on neighborhood commercial corridors and the growth of small businesses.

Recent and ongoing investments include:

  • Support for the Jumpstart Small Business Initiative, which provides grants, technical help, and tax preparation support for local entrepreneurs.
  • Ongoing expansion of programs aimed at revitalizing neighborhood corridors and strengthening local business districts.
  • Targeted initiatives to improve access to capital and resources for small and minority-owned businesses.

The Chamber supports policies that strengthen the region’s economic position and foster conditions for businesses of all sizes to grow, invest, and hire locally.

These investments will also need to be considered alongside new delivery-related fees and other tax adjustments that may influence operating costs and consumer behavior at the neighborhood level.

Investing in Infrastructure and Economic Opportunity

The FY27 capital program includes targeted infrastructure investments meant to boost economic opportunity throughout Philadelphia.

Among the suggested investments:

  • Nearly $11 million for improving public transportation infrastructure, leveraging additional state and federal funding.
  • $14.5 million for improvements to commercial corridors and waterfronts, including continued investment in the I-95 Central Access Philadelphia (CAP) project.
  • Major infrastructure enhancements supporting cultural institutions, such as the Philadelphia Museum of Art, the Mann Music Center, the Dell Music Center, and the Please Touch Museum.

These investments aim to strengthen Philadelphia’s tourism economy, support neighborhood revitalization, and improve the city’s competitiveness on a global scale.

Public Safety Investments

Public safety is a central focus of the FY27 budget proposal. It includes investments aimed at bolstering law enforcement and expanding community programs.

Key investments include:

  • More than $31 million for fire facilities and vehicles. This includes upgrades to the Fire Academy to increase training capacity.
  • Almost $9 million for prison infrastructure improvements. This includes security system upgrades and building repairs.
  • Continued funding for traffic safety through the Vision Zero initiative, including $5 million annually to improve street safety and reduce traffic deaths.

The capital program also includes $30 million to build two new health centers in Northeast Philadelphia, which will broaden access to healthcare services and community support programs.

Housing and Neighborhood Development

Increasing housing supply is a top priority for the administration. Through the Housing Opportunities Made Easy (H.O.M.E.) initiative, the City of Philadelphia is working to boost housing production, streamline development, and enhance housing affordability throughout Philadelphia.

The Administration’s housing strategy includes:

  • Large investments to create and preserve new housing units.
  • Efforts to speed up housing construction through regulatory changes and improved permitting.
  • Partnerships with nonprofit and private developers to increase housing supply.

Housing affordability is vital piece of Philadelphia’s economic opportunity agenda. It ensures that workers and families can live in the communities where they earn their livelihood.

Investing in Clean and Green Neighborhoods

The FY27 proposal also maintains the administration’s focus on improving neighborhood quality of life.

Programs that support clean and green initiatives include:

  • Increased investments in sanitation vehicles and equipment to enhance city cleaning operations.
  • Continued implementation of the city’s greening and beautification strategies, which involve anti-litter initiatives and improving corridors.
  • Investments in public art, landscaping, and community spaces that enrich neighborhood life.

Clean and safe neighborhoods are crucial for attracting businesses, supporting tourism, and enhancing overall quality of life for residents.

Preparing Philadelphia for Global Opportunities

As Philadelphia gets ready for a series of major global events in 2026, including the nation’s 250th anniversary and the FIFA World Cup, the administration emphasizes strategic investments.

These are aimed at preparing the city to meet the moment for upcoming events while capitalizing on opportunities for long-term economic growth. These events offer a chance to showcase Philadelphia to a global audience while creating economic activity for local businesses and communities.

Ensuring the city’s infrastructure, workforce, and business environment are ready to take advantage of these opportunities is a key focus in the FY27 budget proposal.

Looking Ahead

Mayor Parker’s FY27 budget proposal lays out a broad plan for investing in Philadelphia’s future. This includes targeted investments in infrastructure, housing, job creation, workforce development, and improving neighborhood quality of life.

As the budget gets reviewed by City Council, stakeholders across the region will play an important role in shaping the final plan.

The Chamber remains committed to working with local leaders, policymakers, and the business community throughout the budget process. Together, they aim to advance policies that strengthen Philadelphia’s competitiveness and create pathways for inclusive economic growth and expanded access to mobility opportunities across the region.